O-1779-10-99ORDINANCE NO. 1779-10-9
' AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, DESIGNATING REINVESTMENT ZONE NO. 22 (OKMETIC,
INC.) PROVIDING ELIGIBILITY OF THE ZONE FOR COMMERCIAI-
INDUSTRIAL TAX ABATEMENT; CONTAINING FINDINGS THAT THE AREA
QUALIFIES TO BE DESIGNATED AS A REINVESTMENT ZONE AND THE
SOUGHT ARE FEASIBLE AND PRACTICABLE AND OF
BENEFIT TO THE LAND AND THE CITY; PROVIDING FOR A SEVERABILITY
CLAUSE; PROVIDING FOR A REPEALING CLAUSE; AND PROVIDING FOR THE
EFFECTIVE DATE OF SAID ORDINANCE.
WHEREAS, the City Council of the City of Allen, Texas, has caused notice to be published in a newspaper
having general circulation in the City and has delivered such notice to the presiding officer of the governing
body of each taxing unit that includes in its boundaries real property described herein; and
WHEREAS, the City Council of the City of Allen, Texas, has conducted a public hearing on the designation
of the area described herein as a reinvestment zone; and
WHEREAS, the proposed Tax Abatement Agreement by and among the City of Allen, Texas, and Okmedc,
Inc., County of Collin, Texas, and Collin County Community College District attached hereto as Exhibit "C",
has been presented to the City Council; and the City Council is of the opinion and finds that the terns and
conditions thereof should be approved and that the Mayor should be authorized to execute the Agreement on
behalf of the City of Allen.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS:
SECTION 1. That the City Council of the City of Allen, Texas, finds that the area described herein will, if
designated as a reinvestment zone, be reasonably likely to contribute to the rendition or expansion of primary
employment, or to attract major investment in the zone that will be of benefit to the property and contribute to
the economic development of the City. The City Council further finds that the improvements sought are
feasible and practicable and would be of benefit to the land to be included in the zone and to the City after the
expiration of a tax abatement agreement.
SECTION 2. That pursuant to the provisions of Section 312.201 of the Texas Tax Code, the property
described in Exhibit "A" attached hereto and as depicted in the drawing attached hereto as Exhibit "B" and
made a par hereof for all purposes is hereby designated as a reinvestment zone and for identification is
assigned the name "Reinvestment Zone No. 22."
SECTION 3. That the property within Reinvestment Zone No. 22 is eligible for commercial -industrial tax
abatement effective on January 1, 2000, and for a period of ten (10) years.
SECTION 4. That the Agreement attached hereto as Exhibit "C" having been reviewed by the City
Council and found to be acceptable and in the best interests of the City and its citizens, is hereby approved,
and the Mayor is hereby authorized to execute the Agreement on behalf of the City of Allen, Texas.
SECTION 5. That it is hereby declared to be the intention of the City Council that the sections, paragraphs,
sentences, clauses, and phrases of this ordinance are severable, and if any phrase, clause, sentence or section
of this ordinance shall be declared unconstitutional or invalid by any judgment or decree of a court of
competent jurisdiction, such uncons itudomality or invalidity shall not affect any other remaining phrase,
clause, sentence, paragraph or section of this ordinance; and the City Council hereby declares it would have
passed the remaining portions even though it had known the affected parts would be held unconstitutional.
SECTION 6. That all ordinances of the City of Allen in conflict with the provisions of this ordinance shall
be, and the same are hereby, repealed; provided, however, that all other provisions of said ordinances not in
conflict herewith shall remain in full force and effect.
SECTION 7. That this ordinance shall take effect immediately from and after its passage and publication in
accordance with the provisions of the Charter of the City of Allen, and it is accordingly so ordained.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON THIS THE 21sT DAY OF OCTOBER, 1999.
APPROVED:
Stephen Terrell, MAYOR
APPROVED AS TO FORM: ATTEST:
r er G. Smith, CITY ATTORNEY J dy Mo on, CMC, CITY SECRETARY
Ordinance No. 1779-10-99 Page
EXHIBIT `A^
LEGAL DESCRIPTION
Lots 2 and 3, Block A, TEXET ADDITION to the City of Allen, Collin County, Texas, according
to plat recorded in Cabinet C, Slide 582, Map Records of Collin County, Texas.
Ordinance No. 1779-10-99
C4
JI
EXHIBIT B
Ordinance No. 1779-10-99
ALL-
PARK-
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4576 0276
' WHEREAS, a copy of this AGREEMENT has been famished, in the manner prescribed by
the TAX CODE, to the presiding officers of the governing bodies of each of the TAXING UNITS in
which the PREMISES is located; and
WHEREAS, the CITY desires to enter into an AGREEMENT with OICMMC the owner
of property within the ZONE for the abatement of taxes pursuant to Chapter 312 of the TAX CODE,
as amended;
NOW, THEREFORE, in consideration of the mutual benefits and promises contained herein
and for good and other valuable consideration, the adequacy and receipt of which is hereby
acknowledged, including the expansion of primary employment, the attraction of major investment in
the ZONE, which contributes to the economic development of the CITY and the enhancement of the
tax base with in the CITY, the parties agree as follows:
GENERAL PROVISIONS
1. OKMETIC is the owner of the real property described in ExluW "A" attached hereto
and made a part hereof for all purposes (the "PREMISES'), which PREMISES is located within the
city limits of the CITY and within the ZONE. OKMETIC is the owner of TANGIBLE
PERSONAL PROPERTY to be located on the PREMISES.
2. The PREMISES is not an improvement project financed by tax increment bonds.
3. This AGREEMENT is entered into subject to the rights of the holders of outstanding
bonds of the CITY.
4. The PREMISES is not owned or leased by any member of the Allen City Council, or
any member of the Allen Planning and Zoning Commission, or any member of the governing body of
any taxing units joining in or adopting this AGREEMENT.
TAX ABATEMENT AUTHORIZED
5. This AGREEMENT is authorized by the TAX CODE, and in accordance with the
TAX ABATEMENT GUIDELINES, and approved by resolution of the City Council of the CITY
authorizing the execution of tins AGREEMENT.
6. Subject to the terms and conditions of this AGREEMENT, and provided that the
TAXABLE VALUE of the TANGIBLE PERSONAL PROPERTY to be added to the
PREMISES is at least One Ivfdkon Five Hundred Thousand Dollars ($1,500,000) as of January 1 of
the FIRST YEAR OF TAX ABATEMENT, and is at least Three Million Dollars ($3,000,000) as of
January 1 of each year thereafter. The CITY hereby grams OKMETIC an abatement of forty percent
(400/6) of the TAXABLE VALUE of the TANGIBLE PERSONAL PROPERTY for a period of
ten (10) years. The actual percentage of taxes subject to abatement for each year of this
AGREEMENT will apply only to the TANGIBLE PERSONAL PROPERTY added to the
PREMISES after this AGREEMENT is executed (BASE YEAR/1999).
TAX ABATFWNT A(:rrFFt.,tFNT - Page 2 SS28225
L576 0277
7. The period of tax abatement herein authorized shall be ten (10) years, beginning the
FIRST YEAR OF TAX ABATEMENT (hereinafter defined).
8. During the period of tax abatement herein authorized, OICWETIC shall be subject to
all City taxation not abated, including but not limited to, sales tax and ad valorem taxation on land to
the extent not abated hereby.
DEFINITIONS
9. Wherever used in this AGREEMENT, the following terms shall have the meanings
ascribed to them:
A. The PREMISES shall mean the real property described in Exhibit "A'
attached hereto and incorporated herein for all purposes including the BNPROVEMENTS;
B. The IMPROVEMENTS shall mean the improvements constructed on the
PREMISES and as fiuther described herein, including but not limited to buildings and
s0uchrres added to the property.
C. The BASE YEAR shall mean the year in which the Tax Abatement
LAgreement is executed (1999).
D. The FIRST YEAR OF TAX ABATEMENT shall be January 1, 2000 unless
otherwise agreed to by the parties.
E. TAXABLE VALUE means the appraised value as certilled by the Collin
County Appraisal District as of January 1 of a given year.
F. Event of Bankruptcy or Insolvency shall mean the dissolution or
termination of OKMETIC's existence as a going business, insolvency, appointment of
receiver for any part of OKMETIC's property and such appointment is not terminated
within ninety (90) days after such appointment is initially made, any general assignment for
the benefit of creditors, or the commencement of any proceeding under any banluuptcy or
insolvency laws by or against OKMETIC and such proceeding is not dismissed within
ninety (90) days after the fling thereof.
10. OKMETIC is the owner of the real property described in Exhibit "A", and the
IMPROVEMENTS located thereon. OKMETIC agrees to locate and maintain TANGIBLE
PERSONAL PROPERTY on the PREM64ES with a TAXABLE VALUE of at least One Militia
Five Hundred Thousand Dollars ($1,500,000) as of January 1 of the FIRST YEAR OF
ABATEMENT and with a TAXABLE VALUE of at least Three Million Dollars ($3,000,000) as of
January 1 each year thereafter that this AGREEMENT is in effect. Nothing in this AGREEMENT
TAX ABATEMENT AGREEMENT - Page 3 833ar25
4576 027$
shall obligate OKMETTC to locate TANGIBLE PERSONAL PROPERTY on the PREMISES,
but said action is a condition precedent to tax abatement pursuant to this AGREEMENT.
IMPROVEMENTS
11. Subject to events of casualty, condemnation, or Force Majeure, OKMETIC agrees to
maintain the PREMISES in substantial accordance with all applicable state and local laws, codes, and
regulations for a period of not less than ten (10) years after the date a certificate of occupancy is issued
for the IMPROVEMENTS.
12. The CITY, its agents and employees, shall have the right of reasonable access to the
PREMISES during construction to inspect the IMPROVEMENTS at reasonable tires during
normal business hours and with reasonable notice to OK IETIC, and in accordance with their visitor
access and security policies, in order to insure that the construction is in accordance with this
AGREEMENT and all applicable state and local laws and regulations (or valid waiver thereof).
GENERAL REQUIREMENTS
13. Construction plans for the IMPROVEMENTS constructed on the PREMISES will
be Sled with the CITY, which shall be deemed to be incorporated by reference herein and made a part
hereof for all purposes.
14. OICKETIC shall annually certify to the CITY in writing that it is in compliance with
each term of the AGREEMENT.
15. The PREMISES constructed thereon at all times shall be used in the manner that is
consistent with the CITY's Comprehensive Zoning Ordinance, as amended.
16. OKMETIC agrees from and atter the date a certificate of occupancy is issued for the
IMPROVEMENTS and continuing thereafter for a period of ten (10) years that the PREMISES
shall not be used for any purpose other than technical office building.
DEFAULT: RECAPTURE OF TAX REVENUE
17. In the event that OKMETIC fails in performance of any of the following conditions:
(i) has any delinquent ad valorem or State sales taxes owed to the CITY (provided OKMETIC
retains the right to timely and property protest and/or contest such taxes or assessment and the tax
abatement will be applied to the amount of taxes finally detwitmed to be due as the result of any such
protest or contest); (ii) upon the occurrence of any 'Event of Bankruptcy or Insolvency'; or (iii)
breaches any, of the material terms and conditions of this AGREEMENT, then OKMETIC, after the
expiration of the notice and cure periods described herein, shall be in default of this AGREEMENT.
As liquidated damages in the event of default, OKMETIC shall, within thirty (30) days after demand,
pay to the CITY all taxes which otherwise would have been paid to the CITY without benefit of a tax
abatement with interest at the statutory rate for delinquent taxes as determined by Section 33.01 of the
TAX CODE, as amended, but without penalty. The parties aclmowledge that actual damages in the
TAX ABATEMENT AGREEMENT - Page 4 ssxsrss
4576 0279
event of default termination would be speculative and difficult to determine. The parties further agree
that any property tax revenue lost, including interest as a result of this AGREEMENT, at the statutory
rate for delinquent taxes, shall be recoverable against OKMETIC and shall constitute a tax lien against
the property the subject of the AGREEMENT, and shall become due, owing and shall be paid to the
CITY within thirty (30) days after termination.
18. Upon breach by OKMETIC of any obligations under this AGREEMENT, the CITY
shall notify OKMETIC in writing. OKMETIC shall have sixty (60) days from receipt of the notice in
which to cure any such default. If the default cannot reasonably be cured within a sixty (60) day
period, and OKMETTC has diligently pursued such remedies as shall be reasonably necessary to cure
the default, then the CITY may, in its discretion extend the period in which the violation must be
cured.
19. If OKMETIC fails to cure the default within the time provided herein or, as such time
period may be extended, then the CITY at its sole option shall have the right to terminate this
AGREEMENT by written notice to OKMETIC.
20. Upon termination of this AGREEMENT by CITY, all tax abated as a result of this
AGREEMENT shall become a debt to the CITY as liquidated damages, and shall become due and
payable not later than thirty (30) days after a notice of termination is made. The CITY shall have all
remedies for the collection of the abated tax provided generally in the TAX CODE for the collection
of delinquent property tax. The CITY at its sole discretion has the option to provide a repayment
schedule. The computation of the tax abated for the purposes of the AGREEMENT shall be based
upon the full TAXABLE VALUE without tax abatement for the years in which tax abatement
hereunder was received by OKMETIC with respect to the TANGIBLE PERSONAL PROPERTY,
as determined by the Collin County Appraisal District, multiplied by the tax rate of the years in
question, as calculated by the City Tax Assessor -Collector Penalties as provided for delinquent taxes
shall commence to accrue after expiration of the thirty (30) day payment period.
ANNUAL APPLICATION FOR TAX EXEMPTION
21. It shall be the responsibility of OKMETIC, pursuant to the TAX CODE, to file an
annual exemption application form with the Chief Appraiser for each appraisal district in which the
eligible taxable property has situs. A copy of each exemption application shall be submitted to the
CITY.
22. OKMETIC shall annually render the value of the TANGIBLE PERSONAL
PROPERTY to the Appraisal District and provide a copy of the same to the CITY.
ASSIGNS
23, This AGREEMENT shall be binding on and inure to the benefit of the parties to it and
thea respective heirs, executors, administrators, legal representatives, successors, and assigns. This
AGREEMENT may not be assigned without the CITY's consent.
TAX ABATEb1ENT AGREEMENT - Page 5 SS28225
L576 0280
' NOTICE
24. All notices required by this AGREEMENT shall be addressed to the following, or
such other party or address as the patties designate in writing, by certified mail, postage prepaid, return
receipt requested, or by hand delivery.
1. CITY: Mayor and City Manager
City of Allen
One Butler Circle
Allen, Texas 75013
2. OKMETIC: OKMETIC, Inc.
301 Ridgemont Drive
Allen, Texas 75002
3. COLLIN COUNTY: County of Collin
do County Judge
210 S. McDonald Street
McKimrey, Texas 75069
' 4. COLLIN CCD: Collin County Community College District
C/o Carey Cox, Chairman
2200 W. University
McKinney, Texas 75070
25. This AGREEMENT was authorized by resolution of the City Council authorizing the
Mayor to execute this AGREEMENT on behalf of the CITY.
26. This AGREEMENT was authorized by the minutes of the Commissioners Court
of Collin County, Texas, at a meeting whereupon it was duly determined that the County Judge
would execute the AGREEMENT on behalf of Collin County, Texas.
27. This AGREEMENT was authorized by the Board Mmutes of the Board of
Trustees of Collin County Community College District at a Board Meeting whereupon it was duly
determined that the Chairman would execute the AGREEMENT on behalf of Collin County
Community College District.
SEVERABIIdTY
28. In the event any section, subsection, paragraph, sentence, phrase or word herein is held
invalid, illegal or unconstitutional, the balance ofthis AGREEMENT, shall be enforceable and shall be
enforced as if the parties intended at all times to delete said invalid section, subsection, paragraph,
sentence, phase or word; and such invalid, illegal, unconstitutional or unenforceable section,
TAX ABATEh1ENT AGRIB;tvtENT - Page 6 SS28225
4516 0281
E subsection, paragraph, sentence, phrase or word shall be substituted by a section, subsection,
paragraph, sentence, phrase or word as near m substance thereto as may be valid, legal, constitutional
and enforceable.
APPLICABLE LAW
29. This AGREEMENT shall be construed under the laws of the State of Texas. Venue
for any action under this AGREEMENT shall be the State District Court of Collin County, Texas.
This AGREEMENT is performable in Collin County, Texas.
COUNTERPARTS
30, This AGREEMENT may be executed in any number of counterparts, each of which
shall be deemed an original and constitute one and the same instmment.
ENTIRE AGREEMENT
31. This AGREEMENT embodies the complete agreement of the parties hereto,
superseding all oral or written previous and contemporary agreements between the parties and relating
to the matters in this AGREEMENT, and except as otherwise provided herein cannot be modified
without written agreement of the parties to be attached to and made a part of this AGREEMENT.
32. The provisions of this AGREEMENT are hereby declared covenants running with the
PREMISES and are filly binding on each and every subsequent owner, tenant, subtenant, licensee,
manager and occupant of all or any portion of the PREMISES and all successors, and assigns of
OKMETIC who acquire any right, title, or interest in or to the PREMISES or any part thereof. Any
person who acquires arty right, title, or interest in or to the PREMISES, or any part hereof thereby
agrees and covenants to abide by and fully perform the provisions of this AGREEMENT with respect
to the right, title or interest in such PREMISES.
RECORDATION OF AGREEMENT
33. A certified copy of this AGREEMENT shall be recorded in the Deed Records of
Collin County, Texas.
OF RECITALS
34. The determinations recited and declared in the preambles to this AGREEMENT are
hereby incorporated herein as part of this AGREEMENT.
35. All exhibits to this AGREEMENT are incorporated herein by reference for all
purposes wherever reference is made to the same.
TAX ABATEh4FNT AGREEh1ENT - Page 7 s92sz25
4516 0282
' EXECUTED m duplicate originals this the 671 day of GeT
0-80999.
CITY OF ALLEN, TEXAS
Of ty.. .leF
V LABy:
STEPHEN TERRELL, MAYOR
r i
ATTk'ST1 Y6D
B
Y MORRISON, CITY SECRETARY
EXECUTED in duplicate originals this the 3ZW day of Sqmi6lt999.
OKFiETIC, INC.
' By:
Name: t1aNr! 17M15
Title: 'PLAW-1 ik.MA'407-
EXECUTED in duplicate originals this the � 5"y of Du— . , 1999.
COUNTY OF COLLIN
By:
RON HARRIS, COUNTY KWM
TAX ABATEWNT AGREEMCNf - Page 8 sszasxs
1
4576 0283
EXECUTED in &pficate originals this theL7 day of Xw 1999.
COLLIN COUNTY COMMUNITY COLLEGE
DISTRICT
By: - AW pf
CAREY COY, CHAMMk
TAX ABAGREEMENT - Page 9 seams
MAYOR'S ACKNOWLEDGMENT
STATE OF TEXAS
COUNTY OF COLUN
4576 0284
This instnunent was acknowledged before me on the 4_ day of OonA6 P-
1999, by Stephen Terrell, as Mayor of the City of Allen, Texas.
My Commission Expires:
TAX ABATENENT AGREEIv¢NT - Page 10
N tart' P fic In and For the State of Texas
SS28223
/�� -
I.,
JUDY MOaa1SON
MY COMMISSION IXPIFES
OaDber 1s, 2001
My Commission Expires:
TAX ABATENENT AGREEIv¢NT - Page 10
N tart' P fic In and For the State of Texas
SS28223
I
OHIIETIC'S ACKNOWLEDGMENT
STATE OF TEXAS
COUNTY OF COLLIN
4576 0285
This instrument was acknowledged before me on the 300k day ofit>Ki3ri
1999, by l;L,&IoP.TAMS NO-A(,V,`r60t-- ,onbehalf ofOKMETIC,Inc.
POF CNARISSE Rbk t
Tem P(
> Sa Terns
�s�e,i0 My Comm. Expo W -O
My Commission Expires:
09_0110y
TAX ABATEMENT AGREE[r¢NT -Page I I
Notary Public In and'For the State Texas
k$*I Yi M
1
COUNTY'S ACKNOWLEDGMENT
STATE OF TEXAS
COUNTY OF COLLIN
4576 0286
This instrument was acknowledged before me on the � day of � a c e h a n
1999, by Ron Harris, as County Judge of Collin County, Texas.
My Commission Expires:
f
TAX ABATEhfENT AGREEMENT - Page 12
Q,e �l 11sQrQc�
Notary Pubhc In, an For the State of Texas
FY, 1fy M
4576 0287
COLLEGE DISTRICTS ACKNOWLEDGMENT
STATE OF TEXAS §
COUNTY OF COLLIN §
This instrument was acknowledged before me on the ;.3 day of AVlfti1999, by
Carey Cox, being the Chairman of the Collin County Community College District
(�=TARUB
E
t,te �/rt—
StaNotan lblic and For the State of Texas
pY
My Commission Expires:
Q/-„3/-2UU2
TAX ABATEMENT AGREEFdvv1F.N7' - Page 13 M2d225
' EXHIBIT"A"
1
LEGAL DESCRIPTION
Lots 2 and 3, Block A, TEXET ADDITION to the City of Allen, Collin County, Texas, according
to plat recorded in Cabinet C, Slide 582, Map Records of Collin County, Texas.
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bo Y� ua�rs�� 4 STc ZI I
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TAX ABATEMENT - Page 14
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